Infosys says audit committee to probe whistleblower letter on Panaya

An anonymous whistleblower wrote a letter to Sebi alleging Infosys overpaid for Panaya

Infosys, India's second-largest software exporter, says that the company's audit committee would probe allegations made by an anonymous whistleblower after the Bombay Stock Exchange and the National Stock Exchange sought clarity on the charges made against its CEO Vishal Sikka and the acquisition of Israeli firm Panaya.

An anonymous whistleblower wrote a letter to Indian market regulator SEBI and the US SEC among others alleging Infosys overpaid for Panaya and former chief financial officer Rajiv Bansal walked out of a meeting called to approve the acquisition by the board.

The whistleblower's letter mentioned that Panaya was struggling to raise money and employees were leaving the company when the acquisition happened and the board overlooked the decision to buy the firm at a "premium". Infosys has denied the charges saying that the deal was valued by Deutsche Bank and the company paid within the band recommended by the bank.

Sikka had maintained that the company would defend the allegations made targeting employees and him, to the point of harassment and denied any wrongdoing.

In response to letters seeking clarification from National Stock Exchange and Bombay Stock Exchange, the company today said the complaints are submitted to its Audit Committee.

"The whistleblower complaints have been placed before the Audit Committee and as is normal practice, in accordance with company's whistleblower policy, the Audit Committee is taking steps to initiate an investigation into the allegations made," said the company in a filing on Wednesday.

Infosys has been under attack by its founders led by N R Narayana Murthy on corporate governance concerns, with Murthy asking the company board to come clean on these issues.

"They are all good intentioned people of high integrity but obviously being human even good people sometimes make mistakes This is one such case. But good leaderships demands that they listen to all concerned shareholders, re-evaluate their decision and take corrective action. I hope they take corrective action soon and improve governance for a better future for the company," he wrote in a statement.

Infosys chairman R Seshasayee has said any allegations would be investigated, while maintaining that there were perception issues between the founders and the way the company was run.